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Any statements in this presentation that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,” “outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,” “outcome,” “continue,” “remain,” “maintain,” “on track,” “trend,” “objective,” “looks forward,” “projects,” “models” and variations of such words and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, as they relate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of this presentation and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's management for future or past operations, products or services, and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries as well as estimates of credit trends and global stability. Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies; operational, systems or infrastructure failures; reliance on other companies to provide certain key components of business infrastructure; cybersecurity risks; whether Comerica may achieve opportunities for revenue enhancements and efficiency improvements under the GEAR Up initiative, or changes in the scope or assumptions underlying the GEAR Up initiative; Comerica's ability to maintain adequate sources of funding and liquidity; the effects of more stringent capital requirements; declines or other changes in the businesses or industries of Comerica's customers; unfavorable developments concerning credit quality; changes in regulation or oversight; heightened legislative and regulatory focus on cybersecurity and data privacy; fluctuations in interest rates and their impact on deposit pricing; transitions away from LIBOR towards new interest rate benchmarks; reductions in Comerica's credit rating; damage to Comerica's reputation; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financial institutions within Comerica's markets; the interdependence of financial service companies; the implementation of Comerica's strategies and business initiatives; changes in customer behavior; management's ability to maintain and expand customer relationships; the effectiveness of methods of reducing risk exposures; the effects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; the impacts of future legislative, administrative or judicial changes to tax regulations; any future strategic acquisitions or divestitures; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; losses due to fraud; the effects of terrorist activities and other hostilities; changes in accounting standards; the critical nature of Comerica's accounting policies; controls and procedures failures; and the volatility of Comerica’s stock price. Comerica cautions that the foregoing list of factors is not all-inclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to “Item 1A. Risk Factors” beginning on page 12 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2018. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this presentation or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Michigan$19.9 37%
California$16.2 30%
Texas$8.7 16%
Other$9.2 17%
Michigan$12.6 25%
California$18.8 38%
Texas$10.3 21%
Other Markets$8.1 16%
3/31/19 unless otherwise noted; comparisons shown 1Q19 vs. 1Q18 1Source: S&P Global Market Intelligence; based on 3/31/19 regulatory data for domestic financial holding companies using C&I loans 2Consists of Other Markets ($7.9B) & Finance/ Other ($1.3B)
3
2
Loans$49.7
Deposits$54.0
QTD average loans growth of $1.1B, or 2.2%
4
2Q19 average balances through 5/31/19 are preliminary and subject to change 1Comparisons of 2Q19 through 5/31/19 vs 1Q19 2Source:1Q19 earnings release materials 3Source for peer group data: S&P Global Market Intelligence See slide 5 for list of peer banks
49.248.6 48.8
49.750.8
2Q18 3Q18 4Q18 1Q19 2Q19 thru 5/31
1.7% 1.6%
CMA Peers
17 bps
11 bps
CMA Peers
5043 41 39 36 34 33
28 26 25 24 24
CMA
ZION
BOKF CF
R RF MTB
BBT
FITB KE
Y
STI
HBAN FH
N
Balances have stabilized
5
55.8 56.1 55.754.0 54.6
2Q18 3Q18 4Q18 1Q19 2Q19 thru 5/31
2Q19 average balances through 5/31/19 are preliminary and subject to change 1Comparisons of 2Q19 through 5/31/19 vs 1Q19 2Percentage of noninterest-bearing deposits to total deposits. Source for peer group data: S&P Global Market Intelligence
Outlook as of 6/10/19 1Through 6/10/19 2Average common shareholders’ equity
Utilize interest rate hedges to reduce impact of future decline in rates
6
••
14-15%17-18%
18-19%
-200bps/100bpson average
Flat rates +200bps/100bpson average
50.81
55.80
56.60
57.56
58.29
60.20
60.78
61.30
61.90
61.93
63.90
CMA
HBAN BB
T
MTB RF
ZION ST
I
FITB KE
Y
BOKF FH
N
430 437 440 434 43316 11 12 14
446 448 452 448 433
56%53% 53% 52% 51%
1Q18 2Q18 3Q18 4Q18 1Q19
Restructuring
Careful cost management drives efficiency ratio1 to 51%
1Noninterest expenses as a percentage of net interest income & noninterest income excluding net gains (losses) from securities & aderivative contract tied to the conversion rate of Visa Class B shares 2Source for peer group data: S&P Global Market Intelligence; excludes CFR as data was not available 7
12.34
11.30
10.78
10.71
10.30
10.05
9.84
9.84
9.80
9.66
9.65
9.09
CFR
ZION CM
A
BOKF BB
T
MTB
HBAN KE
Y RF FHN
FITB ST
I
1Shares repurchased under share repurchase program 2Outlook as of 6/10/19 3Source: S&P Global Market Intelligence
Returning excess capital at a fast pace
1
Solid performance & strong capital position enables continued meaningful return of capital
Target upper end of 9.5-10% CET1 range by FYE19 given pace of loan growth2
8
(9.9) (9.8)(7.4) (6.9) (5.5) (5.0) (4.9) (3.6) (1.8) (1.1)
8.0 9.2
CMA RF
ZION MT
B STI
HBAN KE
Y
FHN
BBT
CFR
FITB
BOKF
162
159
141
108
97 96 94 88 88
56 44 39
CMA
ZION FITB MT
B
FHN
KEY
STI
RF
BOKF
HBAN BB
T
CFR
1Source for peer group data: S&P Global Market Intelligence; FITB includes gain on sale of Worldpay shares & close of MB Financialacquisition during 1Q19 2Return on average assets 3Return on average common shareholders’ equity
Provided superior shareholder returns in 2018 & 1Q19
LONG HISTORY
NIMBLE SIZE$74B IN ASSETS
9
OONG HISS OOORYRYRRYRRRYRR
MMMBLE SSIZEEE
H
B E
2.11
1.97
1.68
1.48
1.43
1.35
1.27
1.26
1.17
1.13
1.08
1.03
FITB
CMA
MTB
CFR
BBT
HBAN RF
ZION KE
Y
BOKF ST
I
FHN
18.44
18.19
13.54
12.84
12.40
11.25
10.45
10.37
10.37
9.85
9.52
8.60
CMA
FITB CF
R
HBAN MT
B
ZION BB
T RF KEY
BOKF ST
I
FHN
33% increase in earnings per share (1Q19 vs. 1Q18)
3/31/19; 1Q19 compared to 1Q18 1Through share repurchase program
335400 424
1Q18 4Q18 1Q19
••
•••
••
•
$1.59$1.88
$2.11
1Q18 4Q18 1Q19
11
Expense discipline, strong credit & capital management drove ROE over 18%
1Q19 compared to 4Q18 11Q19 included $8MM loss related to repositioning of securities portfolio 2Includes gain/(loss) related to deferred compensation plan as follows: $2MM in 1Q19; $(7)MM in 4Q18; $1MM in 1Q18. Amounts offset in noninterest expense 3See Reconciliation of Non-GAAP Financial Measures slide 4Diluted earnings per common share 51Q19 repurchases under the share repurchase program
$49,677 $845 $1,25653,996 (1,733) (2,094)
$606 $(8) $57(13) (29) (25)238 (12) (6)246 (4) 2
433 (15) (13)433 (1) 3
85 (5) 31339 29 58
$2.11 $0.23 $0.522.08 0.13 0.54
159,518 (3,983) (15,626)
12
1Q19 compared to 4Q18
Loans increase 1.7%; Loan yields increase 17 basis points with higher rates
13
49.6 51.1 51.8 53.1 52.9
1Q18 2Q18 3Q18 4Q18 1Q19
48.449.2
48.6 48.849.7
50.2 50.3
4.26
4.63 4.744.90
5.07
1Q18 2Q18 3Q18 4Q18 1Q19 4Q18 1Q19
Loan Yields
$ in billions Totals shown above may not foot due to rounding 1Other Markets includes Florida, Arizona, the International Finance Division and businesses that have a significant presence outside of the three primary geographic markets
Middle MarketGeneralEnergyNational Dealer ServicesEntertainmentTech. & Life SciencesEquity Fund ServicesEnvironmental Services
$12.02.37.80.81.32.61.2
$11.72.07.40.81.42.51.2
$11.81.97.30.71.42.11.0
Total Middle Market $28.0 $27.0 $26.2Corporate Banking
US BankingInternational
3.01.3
2.91.3
3.21.3
Commercial Real Estate 5.3 5.2 5.3Mortgage Banker Finance 1.3 1.7 1.4Small Business 3.5 3.6 3.7BUSINESS BANK $42.5 $41.7 $41.1Retail Banking 2.1 2.1 2.1RETAIL BANK $2.1 $2.1 $2.1Private Banking 5.0 5.0 5.2WEALTH MANAGEMENT $5.0 $5.0 $5.2TOTAL $49.7 $48.8 $48.4
Michigan $12.6 $12.5 $12.6
California 18.8 18.3 18.3
Texas 10.3 9.9 9.8
Other Markets1 8.1 8.2 7.6
TOTAL $49.7 $48.8 $48.4
14
1Source: S&P Global Market Intelligence, based on 3/31/19 regulatory data for domestic financial holding companies using C&I loans as % of total loans 2Source for peer group data: S&P Global Market Intelligence 3Source:1Q19 earnings release materials 4Beta: change in total loan yields expressed as a percentage of the increase in the federal funds rate 51Q19 loan yield for STI from earnings release materials
5.33
5.19
5.15
5.07
5.06
4.92
4.85
4.81
4.79
4.75
4.73
4.46
CFR
BOKF MT
B
CMA
BBT
FHN
ZION
HBAN KE
Y RF
FITB ST
I
15
58
91 88 8777 76 73 65 65 64
54 50
CMA
CFR
BOKF
ZION FH
N
KEY
FITB MT
B RF BBT
STI
HBAN
0.6
3.2 3.1 2.3 2.1 1.8 1.7
1.3 1.3 0.9
0.4 0.4
FITB ST
I
RF
ZION CF
R
CMA
MTB
HBAN
BOKF FH
N
KEY
BBT
8472
62 61 55 53 49 48 42 41 33 29
CMA
BOKF CF
R
FITB FH
N
MTB
HBAN KE
Y RF STI
BBT
ZION
Relationship banking focus & deep expertise
1Q19 compared to 4Q18 1Interest costs on interest-bearing deposits 2At 3/31/19
Reflects seasonality
1
16
56.1 55.8 56.1 55.7 54.0 55.6 54.1
0.250.42 0.51 0.62
0.78
1Q18 2Q18 3Q18 4Q18 1Q19 4Q18 1Q19
Deposit Rates
-3.1%
-3.1% -0.3%
1.3% 1.3%
Q1/Q4 Q2/Q1 Q3/Q2 Q4/Q3
Avg. QoQ deposit growth (since 2015) 1Q19/4Q18
Michigan $19.9 $20.2 $21.2
California 16.2 17.2 17.1
Texas 8.7 8.9 9.2
Other Markets1 7.9 8.3 7.7
Finance/Other2 1.3 1.1 0.9
TOTAL $54.0 $55.7 $56.1
$ in billions Totals shown above may not foot due to rounding 1Other Markets includes Florida, Arizona, the International Finance Division and businesses that have a significant presence outside of the three primary geographic markets 2Finance/Other includes items not directly associated with the geographic markets or the three major business segments
Middle MarketGeneralEnergyNational Dealer ServicesEntertainmentTech. & Life SciencesEquity Fund ServicesEnvironmental Services
$13.30.50.30.15.00.80.2
$13.70.50.30.15.20.90.1
$14.00.60.30.15.00.90.2
Total Middle Market $20.1 $20.9 $21.1Corporate Banking
US BankingInternational
1.81.6
2.01.8
2.02.0
Commercial Real Estate 1.5 1.5 1.6Mortgage Banker Finance 0.6 0.6 0.6Small Business 2.9 3.1 3.2BUSINESS BANK $28.5 $30.0 $30.5Retail Banking 20.5 20.6 20.9RETAIL BANK $20.5 $20.6 $20.9Private Banking 3.5 3.8 3.6WEALTH MANAGEMENT $3.8 $4.1 $3.8Finance/Other2 1.3 1.1 0.9TOTAL $54.0 $55.7 $56.1
17
14 14 15 17 17 18 21 21 24 26 27
39
CMA
ZION RF MT
B
CFR
BOKF BB
T
STI
HBAN FITB KE
Y
FHN
39 42 42 45 4661 62 63 70 75 75
101
CMA
CFR
ZION MT
B RF
BOKF ST
I
BBT
HBAN FITB KE
Y
FHN
1Source: S&P Global Market Intelligence 2Beta: change in total deposit costs expressed as a percentage of the increase in the federal funds rate 3Interest costs on total deposits; CMA interest-bearing deposit rate for 1Q19 78 bps.
Results in low funding costs
5043 41 39 36 34 33 28 26 25 24 24
CMA
ZION
BOKF CF
R RF MTB
BBT
FITB KE
Y
STI
HBAN FH
N
18
5166 68 71
83 94 101 105 107 110 115 121
CFR
ZION CM
A
MTB RF STI
BBT
HBAN KE
Y
FITB
BOKF FH
N
Multifamily52%
Retail11%
Commercial9%
Office7%
Single Family
7%Multi use
3%Land Carry
5%Other
6%
$64 $84 $841.2% 1.7% 1.5%
$3 $2 $20.06% 0.04% 0.04%
-0- -0- -0-
$2,687 53% $2,888 53%1,743 34% 1,739 32%
$4,430 87% $4,627 85%661 13% 788 15%
$5,091 100% $5,415 100%
California46%
Texas35%
Other14%
Michigan5%
Long history of working with well established, proven developers
3/31/19 1Excludes CRE line of business loans not secured by real estate 2Criticized loans are consistent with regulatory defined Special Mention, Substandard & Doubtful categories
Total$4,627
Total$4,627
19
325
501 460396
338
1Q19 2Q19 3Q19 4Q19 1Q20
Purchase Refinance
1,399
2,089
2,136
1,742
1,674 2,1
45 2,544
2,352
1,450 1,7
80 1,974
1,861
1,435 1,7
84 1,961
1,677
1,335
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
Actual MBA Mortgage Origination Volumes
3/31/19 1Source: Mortgage Bankers Association (MBA) Mortgage Finance Forecast as of 5/17/19 2$ in billions
A l MBA M O i i i V l
50+ years experience with reputation for consistent, reliable approach
1,2
••
•
20
65+ years of floor plan lending
3/31/19 1Other includes obligations where a primary franchise is indeterminable (rental car and leasing companies, heavy truck, recreational vehicles, and non-floor plan loans)
Toyota/Lexus14%
Honda/Acura16%
Ford9%
GM8%
Fiat/Chrysler11%
Mercedes3%
Nissan/ Infiniti5%Other European
12%
Other Asian12%
Other10%
/
California 58% Texas 7%Michigan 23% Other 12%
Total $7.9B
1
21
3.5
3.6
3.5
3.7
3.8
4.0
3.8
4.0
4.1
4.3
3.9
4.1
4.2
4.3
3.8
4.1
4.5
5.9
6.0
6.0
6.2
6.2
6.5
6.3
6.6
6.8
7.1
6.9
7.1
7.3
7.4
7.0
7.4
7.8
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
Floor Plan
2,074 2,432 2,579 2,539 2,632
1Q18 2Q18 3Q18 4Q18 1Q19
Deep expertise & strong relationships with top-tier investors
2 579 2 632
3/31/19 1Based on 1Q19 period-end loans totaling $1.3B
22
1,437 1,416 1,396 1,353 1,323
1Q18 2Q18 3Q18 4Q18 1Q19
~45% ~25% ~20% ~10%CustomerSegmentOverview
Growth Late Stage Early Stage Leveraged Finance1
102 60 53 48 33
468
319269
205240
1Q18 2Q18 3Q18 4Q18 1Q19
NALs
301 243 233 298 453152
91 100 9475
1,3951,400 1,499
1,7711,857
1,848 1,734 1,832
2,163
2,385
1Q18 2Q18 3Q18 4Q18 1Q19
Midstream Services Exploration & Production
468
NALs
Midstream Services Exploration & Production
Nonaccrual loans continue to decline
3/31/19 1Criticized loans are consistent with regulatory defined Special Mention, Substandard & Doubtful categories
Mixed18%
23
Yields increase 4 basis points
3/31/19 1Estimated as of 3/31/19 2Net unrealized pre-tax gain/loss on the available-for-sale (AFS) portfolio 3Net unamortized premium on the MBS portfolio
24
9.2 9.1 9.1 9.1 9.2 9.3 9.5
11.9 11.8 11.8 11.8 12.0 12.0 12.2
2.09 2.12 2.172.35 2.39
1Q18 2Q18 3Q18 4Q18 1Q19 4Q18 1Q19
Treasury Securities & OtherMortgage-backed Securities (MBS)Securities Yields
••
NIM increased 9 basis points
1Q19 compared to 4Q18
549
590 599 614 606
3.41
3.62 3.603.70
3.79
1Q18 2Q18 3Q18 4Q18 1Q19
NIM
25
$614MM 4Q18 3.70%
+ 17MM Loans + 0.14+$21MM + 10MM- 12MM - 2MM
Higher ratesHigher balances2 fewer daysMix shift
+0.13+0.02
--- 0.01
+ 1MM Securities+ 1MM Higher rates +0.01
+ 0.01
- 12MM Balances at Fed+ 1MM Higher rates +0.01- 12MM Lower balances +0.04- 1MM 2 fewer days --
+ 0.05
- 9MM Deposits - 0.07- 10MM+ 1MM
Higher rates2 fewer days
-0.07--
- 5MM Wholesale funding - 0.04- 2MM- 3MM
Higher ratesHigher balances
-0.02-0.02
$606MM 1Q19 3.79%
3/31/19 1Beta: change in loan yields or interest-bearing deposit costs expressed as a percentage of the increase in the federal funds rate
Utilizing interest rate hedges to reduce asset sensitivity
26
~$312MM
-
3.17
5.07
3Q15 1Q19
-
0.14
0.78
3Q15 1Q19
0.25
2.50
3Q15 1Q19
Beta 84% Beta 28%
Fixed Rate8%
30-Day LIBOR 67%
60-Day+ LIBOR
9%
Prime-based16%
Total$50.3
Commercial Noninterest-
bearing42%
Commercial Interest-bearing
21%
Retail Interest-bearing
29%
Retail Noninterest-
bearing8% Total
$54.0
••
0.1
~(65)
~75~50
~100~130 ~135
Down 50bps
Up 100 bps Addl. $2BDepositDecline
Addl. 20%Increase in
Beta
StandardModel
Addl. ~3%Loan
Growth
3/31/19 For methodology see the Company’s Form 10-Q, as filed with the SEC. Estimates are based on simulation modeling analysis.
0.1
27
326 254 230 221 191
2,1201,765 1,670 1,548
1,806
4.33.5 3.4 3.1 3.6
1Q18 2Q18 3Q18 4Q18 1Q19
NALs Criticized as a % of Total LoansNAL C iti i d % f T t l L
Allowance for loan losses remained strong at 1.29%
3/31/19 1Criticized loans are consistent with regulatory defined Special Mention, Substandard, & Doubtful categories 2Net credit-related charge-offs
738 711 697 701 677
1.42 1.36 1.35 1.34 1.29
1Q18 2Q18 3Q18 4Q18 1Q19
Allowance for Loan Losses as a % of Total Loans
2.1 x2.6 x 2.8 x 2.9 x
3.3 x
1Q18 2Q18 3Q18 4Q18 1Q19
28
30
91
188
139
8139
16 5 20 29 19 10 80
50
100
150
200
250
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
1Q19
Total CMAPeer Average250 Total CMA
Despite 1Q19 & FY18 reserve releases, reserve remains strong
1.291.15 1.05 1.04 1.04 1.01 1.01 1.01 0.97 0.95 0.94
0.65
CMA
MTB STI
ZION BB
T
FITB
HBAN RF KE
Y
CFR
BOKF FH
N
1Source: S&P Global Market Intelligence 2Source: 1Q19 earnings materials; excludes MTB as data was not available
29
06 8 10
18 1925 28 31
37 38 40
ZION FH
N
CMA
MTB
BOKF CF
R STI
KEY
FITB RF
HBAN BB
T
0.39 0.40 0.42 0.45 0.500.61 0.66 0.68 0.71 0.72
1.20
BBT
CMA STI
FITB
ZION
HBAN KE
Y
CFR RF FHN
BOKF
1.20
Reflects strong 4Q18 that included seasonality
1Q19 compared to 4Q18 1See Reconciliation of Non-GAAP Financial Measures slide
30
234 23820 8
244 248 254 250 246
1Q18 2Q18 3Q18 4Q18 1Q19
Securities losses due to repositioning
Careful cost management drives efficiency ratio1 to 51%
1Q19 compared to 4Q18 1Noninterest expenses as a percentage of net interest income & noninterest income excluding net gains (losses) from securities & a derivative contract tied to the conversion rate of Visa Class B shares 2See Reconciliation of Non-GAAP Financial Measures slide 3Included in other noninterest expenses
430 437 440 434 43316 11 12 14
446 448 452 448433
56%
53% 53% 52% 51%
1Q18 2Q18 3Q18 4Q18 1Q19
RestructuringEfficiency Ratio
31
Preparing for a new age in banking
32
1API: Application Program Interface
12/31/18 12018 results versus 2012 baseline; additional details to be published in Comerica’s 2018 Corporate Responsibility Report
33
As of 6/7/19 Source: S&P Global Market Intelligence Debt Ratings are not a recommendation to buy, sell, or hold securities
34
(dollar amounts in millions, except per share data) 1Q19 4Q18 1Q18Noninterest Income:Noninterest income $238 $250 $244Securities repositioning 8 — —Adjusted noninterest income $246 $250 $244Noninterest Expenses:Noninterest expenses $433 $448 $446Restructuring charges — (14) (16)Adjusted noninterest expenses $433 $434 $430Pre-tax Income:Pre-tax income $424 $400 $335Securities repositioning 8 — —Restructuring charges — 14 16Adjusted pre-tax income $432 $414 $351Provision for Income Taxes:Provision for Income Taxes: $85 $90 $54Tax on securities repositioning 2 — —Tax on restructuring charges — 3 4Discrete tax items 11 — 22Adjusted provision for income taxes $98 $93 $80
Comerica believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate our performance trends. Comerica believes the adjusted data shown above and in this presentation provides a greater understanding of ongoing operations and enhances comparability of results with prior periods.
(dollar amounts in millions, except per share data) 1Q19 4Q18 1Q18Net Income:Net income $339 $310 $281Securities repositioning, net of tax 6 — —Restructuring charges, net of tax — 11 12Discrete tax items (11) — (22)Adjusted net income $334 $321 $271Diluted Earnings per Common Share:Diluted earnings per common share $2.11 $1.88 $1.59Securities repositioning, net of tax 0.04 — —Restructuring charges, net of tax — 0.07 0.07Discrete tax items (0.07) — (0.12)Adjusted diluted earnings per common share $2.08 $1.95 $1.54
35
• Securities repositioning refers to losses incurred on the sale of approximately $1 billion of treasury securities that were replaced by higher-yielding treasuries with a similar duration of 4 years.
• Discrete tax items primarily included the tax benefit from employee stock transactions and the charge to adjust deferred taxes resulting from the Tax Cuts and Jobs Act.
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